What is the primary purpose of the California Insurance Code?

The primary purpose of the California Insurance Code is to regulate the insurance industry in California and protect consumers. This comprehensive code establishes the legal framework within which insurance companies must operate, ensuring that they adhere to specific standards and practices aimed at safeguarding policyholders’ interests. The code addresses various aspects of insurance, including the conduct of insurers, agent licensing, solvency requirements, and the rights of consumers.

While setting insurance premium rates, providing legal advice to policyholders, and overseeing insurance agent licensing are all important aspects of the insurance landscape, they fall under broader regulatory functions or operational guidelines rather than defining the primary purpose of the California Insurance Code itself. The focus on consumer protection and regulation is central to maintaining the integrity and stability of the insurance market in California.